ATHENS, Greece, Aug. 31 /PRNewswire-FirstCall/ -- TOP Tankers Inc (Nasdaq: TOPT) announced today operating results for the second quarter ended June 30, 2004.
For the second quarter of 2004, the Company reported net income of $5,709,000, or $0.95 per fully diluted share, compared with net income of $355,000, or $0.06 per fully diluted share, for the second quarter of 2003. The weighted average number of diluted shares used in the computations was 6,000,000 for the second quarters of 2004 and 2003.
For the second quarter of 2004, operating income was $6,486,000, compared with $703,000 for the second quarter of 2003. EBITDA for the second quarter was $9,000,000, compared with $1,647,000 for last year's second quarter. Revenues from vessels for the quarter were $17,428,000, compared to $5,917,000 recorded in the second quarter of last year.
For the six months ended June 30, 2004, TOP Tankers reported net income of $6,953,000, or $1.16 per fully diluted share, compared to $900,000, or $0.15 per fully diluted share, for the first half of 2003. The weighted average number of diluted shares used in the computations was 6,000,000 for the six month periods ended June 30, 2004 and 2003.
For the six-month period ended June 30, 2004, operating income was $8,067,000, compared with $1,462,000 for the first half of 2003. EBITDA for the first six months of 2004 was $12,036,000, compared to $3,182,000 for the same period last year. Revenues from vessels for the six month period ended June 30, 2004, were $25,156,000, compared to $11,278,000 recorded in the first half of 2003.
Evangelos J. Pistiolis, President and Chief Executive Officer of TOP Tankers Inc, commented, "The Company successfully completed its Initial Public Offering on the Nasdaq National Market on July 23, 2004, raising approximately $146 million. Our commitment to executing our strategic plan, in the most efficient way, is evident from our ongoing vessel delivery schedule, which has exceeded our expectations. To date we have taken delivery of seven ice- classed Handymax tankers, which have already commenced producing revenues by immediately entering their two-year profit-sharing employment agreements with major oil traders. Three more vessels are to be delivered by the end of September: the Handymax M/T Spotless, which will complete its special survey and will be delivered to its charterers, and the Suezmaxes M/T Flawless and M/T Timeless, which will both undergo their special surveys."
The following key indicators serve to highlight changes in the Company's financial performance during the second quarter and six-month period ended June 30, 2004:
Total Fleet Total Fleet
Three Months Ended Six Months Ended
(In US Dollars unless June 30, June 30,
otherwise stated) 2003 2004 % Change 2003 2004 % Change
Total available
ship days 382 637 66.8% 686 1,110 61.8%
Total operating days 345 622 80.3% 647 1,076 66.3%
Utilization 90.3% 97.6% 8.1% 94.3% 96.9% 2.8%
TCE per ship per
day under spot
voyage charter 12,558 23,089 83.9% 12,982 19,388 49.3%
TCE per ship per
day under time
charter 14,398 13,407 -6.9% 12,354 13,383 8.3%
Net daily revenue
per ship per day 12,937 20,256 56.6% 12,814 17,357 35.5%
Vessel operating
expenses per
ship per day 6,902 4,632 -32.9% 6,625 4,958 -25.2%
Vessel overhead
burden per ship
per day 1,183 1,156 -2.3% 1,229 1,284 4.5%
Net operating cash
flow per ship
per day 4,852 14,468 198.2% 4,960 11,115 124.1%
Fleet Report
As of the end of the second quarter, TOP Tankers operated a fleet of seven tankers. The fleet consisted of two Suezmax, two Handymax and three Handysize Vessels of approximately 0.45 million Dwt.
During the first half of 2004, the Company took delivery of two double- hull Suezmax tankers, the M/T Endless and the M/T Limitless, built in 1992 and 1993 respectively.
Since the successful completion of the Company's IPO on July 23, 2004, TOP Tankers has taken delivery of seven double hull, ice-classed Handymax tankers, while it expects to receive delivery by the end of September 2004 of the Handymax M/T Spotless, which will have completed its special survey, and the Suezmaxes M/T Flawless and M/T Timeless, which will both undergo their special surveys.
Upon delivery of all new acquisitions, the Company will own and operate a fleet of 17 tankers, consisting of four double hull Suezmax tankers, ten double hull Handymax tankers and three Handysize tankers, with a total carrying capacity of approximately 1.14 million Dwt.
The Company's fleet as of August 31, 2004, is presented in the following
table:
Crude Oil Tankers
Suezmax Country Year Year Hull
Built Built Acquired Type(1) Dwt
Timeless(2) Korea 1991 2004 DH 154,970
Flawless(2) Korea 1991 2004 DH 154,970
Endless Brazil 1992 2004 DH 135,915
Limitless Brazil 1993 2004 DH 136,055
Total Suezmax 581,910
Product Tankers
Handymax
Restless Korea 1991 2004 DH 47,084
Spotless(2) Korea 1991 2004 DH 47,094
Doubtless Korea 1991 2004 DH 47,076
Victorious Korea 1991 2004 DH 47,084
Relentless Korea 1992 2004 DH 47,084
Sovereign Korea 1992 2004 DH 47,084
Invincible Korea 1992 2004 DH 47,084
Vanguard Korea 1992 2004 DH 47,084
Fearless China 1992 2003 DH 44,646
Faithful Japan 1992 2002 DH 45,720
Total Handymax 467,040
Handysize
Tireless Japan 1980 2003 SH 31,766
Prologue Greece 1985 2000 SH 29,990
Yapi Poland 1989 2000 SH 29,998
Total Handysize 91,754
TOTAL COMBINED FLEET(3) 1,140,704
1) DH = Double-hull tanker; SH = Single-hull tanker
2) Vessels to be delivered by end of September 2004
3) Includes scheduled September 2004 deliveries
Fleet Deployment
During the second quarter 2004, the Company had approximately 29.3 percent of the fleet's net operating days on profitable employment agreements. Upon delivery of all vessels, approximately 62.3 percent of the fleet's net operating days for 2004 and 58.6 percent for 2005 will be secured with 50/50 profit-sharing employment agreements, generating at the base rate, approximately $23.7 million and $48.8 million in revenues for 2004 and 2005, respectively.
All of the Company's Handymax tankers will operate under 50/50 profit- sharing employment agreements with major oil traders. Such employment strategy allows the Company to hedge its downside risk, while maintaining its participation in higher spot voyage charter rates.
During the second quarter 2004, the Company's Suezmax fleet was operating in the spot market, earning on average approximately $38,000 per vessel per day on a time charter equivalent (TCE) basis. The existing Suezmax fleet, together with the deliveries of the two additional vessels, upon completion of their special surveys, are expected to continue operating in the spot market, which currently averages approximately $45,000 per ship per day on a TCE basis.
During the second quarter 2004, the Company's Handysize fleet was operating in the spot market, earning an average of $11,250 per ship per day. The Handysize fleet is expected to continue to operate in the spot market.
Conference Call and Webcast
TOP Tankers' management team will host a conference call today August 31, 2004, at 11:00 a.m. EDT, to review the results and to discuss other corporate news and its market outlook.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 888-802-8576 (from the US) or +1 973-935-8514 (international). The conference call will also be accessible via the Internet at www.toptankers.com, or by going to www.vcall.com.
A replay of the conference call will be available for seven days on 877-519-4471 (from the US) or +1 973-341-3080 (international), entering account number: 1628 and conference ID number: 5100343. An online archive will be available immediately following the call and continue for seven days.
About TOP Tankers Inc
TOP Tankers Inc is an international provider of worldwide seaborne crude oil and petroleum products transportation services. Upon delivery of all ten newly acquired vessels, the company will own and operate a fleet of 17 tankers, consisting of four Suezmax tankers, ten Handymax tankers and three Handysize tankers, with a total carrying capacity of approximately 1.14 million Dwt.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although TOP Tankers believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, TOP Tankers cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand for oil and petroleum products, the effect of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in TOP Tankers' operating expenses, including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations including requirements for double-hull tankers or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risk and uncertainties are further described in reports filed by TOP Tankers with the US Securities and Exchange Commission.
Contact: Michael Mason (investors) Stamatis Tsantanis, CFO
Allen & Caron Inc TOP Tankers Inc
212 691 8087 011 30 210 699 4357
michaelm@allencaron.com snt@toptankers.com
TOP TANKERS INC
(Formerly Ocean Holdings Inc)
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Expressed in thousands of US Dollars -- except for share and per share
data)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2004 2003 2004
REVENUES:
Voyage revenues 5,917 17,428 11,278 25,156
EXPENSES:
Voyage expenses 1,454 4,829 2,988 6.480
Vessel operating expenses 2,381 2,881 4,286 5.336
Depreciation 912 2,242 1,629 3.330
Amortization of deferred
charges 59 271 118 561
Management fees charged by
a related party 379 636 732 1.120
General and administrative
expenses 29 83 63 262
Operating income 703 6,486 1,462 8,067
OTHER INCOME (EXPENSES):
Interest and finance costs (321) (778) (535) (1,192)
Interest income -- 1 1 1
Foreign currency gains
(losses), net (27) -- (28) 17
Other, net -- -- -- 60
Total other income
(expenses), net (348) (777) (562) (1,114)
Net Income 355 5,709 900 6,953
Earnings per share,
basic and diluted 0.06 0.95 0.15 1.16
Weighted average number of
shares, basic and diluted 6,000,000 6,000,000 6,000,000 6,000,000
EBITDA RECONCILIATION
(Expressed in Thousands of US Dollars)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2004 2003 2004
EBITDA 1,647 9,000 3,182 12,036
DEPRECIATION AND AMORTIZATION 971 2,513 1,747 3,891
INTEREST AND FINANCE COSTS 321 778 535 1,192
NET INCOME 355 5,709 900 6,953
TOP TANKERS INC
(Formerly Ocean Holdings Inc)
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of US Dollars - except for share and per share
data)
December 31, June 30,
2003 2004
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,343 5,539
Accounts receivable trade 818 2,768
Due from related parties -- 478
Insurance claims 1,065 42
Inventories 509 1,616
Prepayments and other 127 516
Total current assets 4,862 10,959
FIXED ASSETS:
Advances for vessels' acquisition -- 250
Vessels 55,946 131,792
Accumulated depreciation (7,872) (11,202)
Net Book Value 48,074 120,590
Total fixed assets 48,074 120,840
OTHER NON CURRENT ASSETS:
Deferred charges, net 2,356 2,067
Due from related parties 319 435
Restricted cash 300 300
Total assets 55,911 134,601
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt 4,085 13,260
Accounts payable, trade 3,027 3,050
Due to related parties 105 --
Accrued liabilities 694 1,570
Unearned revenue 1,155 668
Total current liabilities 9,066 18,548
LONG-TERM DEBT, net of current portion 30,526 78,022
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value;
20,000,000 shares authorized; none issued -- --
Common stock, $0.01 par value;
50,000,000 shares authorized;
6,000,000 shares issued and outstanding. 60 60
Additional paid-in capital 13,351 30,428
Retained earnings 2,908 7,543
Total stockholders' equity 16,319 38,031
Total liabilities and stockholders'
equity 55,911 134,601
TOP TANKERS INC
(Formerly Ocean Holdings Inc)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Expressed in thousands of US Dollars)
Six Months Ended June 30,
2003 2004
Cash Flows from Operating Activities:
Net income 900 6,953
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 1,629 3,330
Amortization of dry-docking costs 118 561
Amortization of deferred financing costs 17 58
(Increase) Decrease in:
Accounts receivable (730) (1,950)
Due from related parties -- (478)
Insurance claims (1,573) 1,023
Inventories (563) (1,107)
Prepayments and other (325) (389)
Increase (Decrease) in:
Accounts payable 3,031 23
Due to related parties 110 (105)
Accrued liabilities 264 876
Unearned revenue -- (487)
Payments for dry-docking (994) --
Net Cash from Operating Activities 1,884 8,308
Cash Flows from (used in) Investing
Activities:
Vessel acquisitions (19,550) (75,846)
Advances for vessel acquisitions -- (250)
Advances to related parties (131) (116)
Increase in restricted cash (300) --
Net Cash used in Investing Activities (19,981) (76,212)
Cash Flows from (used in) Financing
Activities:
Proceeds from long-term debt 14,100 59,900
Principal payments of long-term debt (1,600) (3,229)
Contributions to additional paid-in
capital 6,175 17,077
Payment of financing costs (95) (330)
Dividends paid (237) (2,318)
Net Cash From Financing Activities 18,343 71,100
Net Decrease In Cash And Cash Equivalents 246 3,196
Cash And Cash Equivalents At Beginning Of
Period 94 2,343
Cash And Cash Equivalents At End Of Period 340 5,539
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid 408 1,042
SOURCE TOP Tankers Inc
-0- 08/31/2004
/CONTACT: Investors, Michael Mason of Allen & Caron Inc, +1-212-691-8087,
michaelm@allencaron.com, for TOP Tankers Inc; or Stamatis Tsantanis, CFO of
TOP Tankers Inc, +011 30 210 699 4357, snt@toptankers.com/
/Web site: http://www.toptankers.com /
(TOPT)
CO: TOP Tankers Inc
ST: Greece
IN: TRN OIL
SU: ERN
BM-KK
-- LATU025 --
8861 08/31/2004 07:35 EDT http://www.prnewswire.com